Prove real worth before selling business concept

Dear Bruce: My husband and I have a business concept for a restaurant franchise, which we would like to sell to an interested party. I have never tried anything like this, and I have no idea where to start. I’m hoping you might be able to provide some advice. I am not interested in opening a restaurant myself or drawing up a detailed business plan or prospectus. We are just looking to sell the concept. – D.J., via e-mail

Dear D.J.: While I respect the fact that you have a concept, you really have nothing to sell. Ordinarily, if you wish to sell a franchise, you first have to open at least one unit and prove the idea works. That requires investing a great deal of time and money. I can’t imagine why anyone would pay for an idea for a restaurant. If you really believe in the concept, you’re going to have to change your point of view. You will have to open a restaurant, create a business plan and prove it works.

Dear Bruce: On several occasions, I have tried to start my own business. I am a chef, but I have very little money. Because of this lack of capital, I stopped pursuing what I thought were very good business opportunities. I now need about $500,000 to open a little restaurant. I could pay it off in four years or less, yet nobody wants to speak to me. –Dan, via e-mail

Dear Dan: You are learning what many of us have learned in small business. The only place you can get money to finance the business is from friends and relatives who love you, or from your own assets. You could try getting money from venture capitalists, but they will extract huge sums because most of the projects they provide money for fail. While $500,000 may not seem like a whole lot of cash, it surely is when the entrepreneur has little or nothing to put into it. If you have personal contacts who can offer smaller amounts, I urge you to pursue this course. Unfortunately, these are the facts of life.

Dear Bruce: I would like to know of any at-home opportunities out there that you might know about. I’ve checked with the Better Business Bureau, but I would like your input on any at-home businesses that you yourself have heard of that are worth looking at. – Reader, via e-mail

Dear Reader: There are many “at-home” businesses which are worth investigating, but I have yet to see one that is being promoted by these guys on television, radio, etc., promising the moon with very little effort. More often than not, you just wind up poorer than you were when you got involved with them. Many employers are allowing employees to work at home on their computers, and I have no quarrel with that. There are so many people out there trying to hustle you into making clowns at home, stuffing envelopes, etc., none of which in my opinion are legitimate. Walk very, very softly. You are part of a large legion of people that would love to work at home and take care of their children. As a consequence, you become very vulnerable.

Bruce Williams is a national radio talk show host and syndicated columnist. He can be reached at bruce@brucewilliams.com.